Urban Density Final


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  • Good morning (afternoon). Thank you for allowing me to speak to you today. My topic is growth, or specifically how we can grow in ways that preserve the health and strength of our city and even improve it. This presentation was produced by a unique collaboration between three leading real estate and environmental organizations and it designed to challenge the way many of us think about growth and density. CLICK TO NEW SLIDE
  • Before we talk about how we want to grow, we should look at the scope of population growth we’ll be absorbing in the coming years. It’s actually much greater than many people realize. CLICK By 2030, there will be 94 million more people in the U.S. than there were in 2000. And all of these people need somewhere to live, somewhere to work and somewhere to shop. CLICK Analysts say that will fuel a construction boom over the next 25 years unlike anything we’ve ever seen. CLICK TO NEW SLIDE ______________________________________________________ Source : Arthur C. Nelson, Toward a New Metropolis: The Opportunity to Rebuild America, Brookings Institution, Washington, DC., 2004. Found at www.brookings.edu/dybdocroot/metro/pubs/20041213_RebuildAmerica.pdf
  • The fact that we will be constructing nearly half of our future buildings in the next 25 years means we have an unprecedented opportunity to re-think the way we develop. CLICK We can grow the way we have for the past 50 years with sprawling, low-density growth. But anyone who suffers the long commute to work or lives in a bedroom town with no sense of community knows how unsuccessful that has been. CLICK TO NEW SLIDE
  • Or we can use this opportunity to create a new model based on based on the best existing urban neighborhoods. When we look at them, we find they share some basic characteristics: In general, CLICK They are walkable and combine homes, work, entertainment and schools in the same area They provide a mix of housing options And they have plenty of parks and outdoor recreation areas. CLICK TO NEW SLIDE
  • The common element that makes all of these attributes possible is well-designed, mixed-use, higher density development. CLICK TO NEW SLIDE .
  • Well-designed density offers us many valuable lifestyle and financial benefits. CLICK It can help us manage our city budget by reducing the need to build new infrastructure. CLICK It can transform declining neighborhoods into lively ones that attract professionals and new businesses. CLICK It can help reduce traffic by creating the critical mass needed for public transportation. CLICK It can create more homes within reach of municipal employees CLICK And it can preserve space for parks and outdoor recreation. CLICK TO NEXT SLIDE
  • As a city, we are already familiar with density. But the idea here is that density alone is not enough. It needs to be well-designed and integrated with the existing city. Here are five principles we can use as guides for future growth to help us maximize the benefits density offers. CLICK TO NEW SLIDE
  • First, we need to make room for tomorrow. CLICK TO NEW SLIDE
  • I already touched on the population growth the U.S. will experience in the next 25 years. Fortunately for us, a lot of that population is seeking urban living. That will create a tremendous demand for new housing. CLICK TO NEXT SLIDE _______________________________________________ Source : Arthur C. Nelson, Toward a New Metropolis: The Opportunity to Rebuild America, Brookings Institution, Washington, DC., 2004. Found at www.brookings.edu/dybdocroot/metro/ pubs/20041213_RebuildAmerica.pdf
  • Which means we need to find ways to meet this need without without pushing people further away from the city. CLICK By encouraging mixed-use, higher-density development, we can welcome these new residents by reusing existing structures and reclaiming blighted and underused areas. CLICK TO NEW SLIDE
  • Second, we need to recognize that America’s housing choices have changed and we need to make sure we are building for them. CLICK TO NEXT SLIDE
  • For generations, married couples with children dominated our housing markets and led to an exodus to the suburbs. CLICK But today those households make up less than 25 percent of American households, and they will be less than 20 percent by 2020. CLICK TO NEXT SLIDE ______________________________________________________ Source: U.S. Census Bureau. U.S. Census Bureau, "America’s Families and Living Arrangements: 2003" (November 2004). www.census.gov/prod/2004pubs/p20-553.pdf
  • In their place are young professionals, couples without children, empty nesters and single parents. CLICK And many of them are returning to the city in search of apartments, condos and townhouses in fun, walkable neighborhoods. CLICK TO NEXT SLIDE
  • Consider this recent survey of homebuyers. When given a choice between a large-lot neighborhood where families depend entirely on cars to get around and a more compact neighborhood with schools, shops, and restaurants nearby, six in ten prospective homebuyers chose the compact neighborhood. This is a fairly dramatic change from just 10 years ago and a sign that Americans are ready to give up their bedroom communities. CLICK TO NEXT SLIDE ______________________________________________________ Source: Smart Growth America and National Association of Realtors. 2004 American Community Survey: National Survey on Communities, Washington, DC, October 2004.
  • Renting is also on the rise. America may be a nation of homeowners, but over the past seven years, more and more Americans are choosing to rent even though they could afford to buy. CLICK A lot of higher-income households are happy to trade long commutes and weekend chores for the convenience of apartment living. If we want to attract them to our city, we need to offer them what they want. CLICK TO NEXT SLIDE ______________________________________________________ Sources : Sources : National Housing Survey, 2001. Washington, DC: Fannie Mae. National Multi Housing Council tabulations of microdata for the U.S. Census Bureau’s Current Population Survey, March Supplement 2004
  • We should also understand that this is not a short term change. The demand for higher density homes – by renters and owners -- is expected to increase in the future. CLICK TO NEXT SLIDE _________________________________________________________________________________________ Sources : Population estimates: U.S. Census Bureau, Population Division. Table 1: Annual Estimates of the Population by Sex and Five-Year Age Groups for the United States: April 1, 2000 to July 1, 2003 (NC-EST2003-01). June 14, 2004 Immigration statistics:   Source : Population Projections Program, Population Division, US Census Bureau, Washington, DC. Found at www.census.gov/population/projections/ nation/summary/np-t6-a.txt
  • The third principle is that we need to make sure we are making the best use of our limited financial resources. CLICK TO NEXT SLIDE
  • Sprawl is expensive. It’s expensive to extend water, sewer, electrical, highway, police, and fire protection farther and farther away. CLICK TO NEXT SLIDE
  • But concentrating development where we already have infrastructure can save us an enormous amount of money. CLICK For example, Chicago can save $3.7 billion over 20 years by growing compactly. And the nation as a whole can save $100 billion over the next 25 years. All of those savings translate into lower taxes for us. CLICK TO NEXT SLIDE ______________________________________________________ Source : The Metropolis Plan: Choices for the Chicago Region, Chicago Metropolis 2020. Chicago, IL, 2002. p. 24. Source: Sam Newberg and Tom O’Neil, “Making the Case,” Multifamily Trends, vol. 6, no. 3, Summer 2003, p. 47.
  • Principle number 4: Make sure we are attracting the “best of the best” to our city. CLICK TO NEXT SLIDE
  • Today’s cities are competing for young knowledge workers, affluent professionals and the “creative class – entrepreneurs and artists.” These groups tend to prefer high quality urban living. CLICK In addition to attracting higher-income households, we can also use higher-density housing to recruit vital service workers such as fire fighters, teachers and police officers. Increasingly, these people can’t afford to live where they work. If we offer them homes within their reach -- through less expensive higher-density building -- we can attract them to our city and raise the quality of life for all of our citizens. NOTE: This slide can be customized with information on how much a teacher, police officer or nurse would have to earn to afford a 1- or 2-bedroom apartment in your town. Data on 64 occupations in 130 of the nation’s largest housing markets is available at www.centerforhousingpolicy.org/p2p. CLICK TO NEXT SLIDE _______________________________________________________________ Knowledge Workers: "The term "knowledge worker" was coined by Peter Drucker some thirty years ago to describe someone who adds value by processing existing information to create new information which could be used to define and solve problems. Examples of knowledge workers include lawyers, doctors, diplomats, law makers, marketers, software developers, managers and bankers…" Creative Class: Includes those whose economic function is to create new ideas, new technology, and new creative content. In general this group shares common characteristics, such as creativity, individuality, diversity, and merit. This group has 38 million members, constitutes more than 30 percent of the U.S. workforce, and profoundly influences work and lifestyle issues. It includes artists and designers; scientists and engineers; and creative professionals, managers, and technicians in many fields.
  • Principle number 5: Make sure that our growth plans fuel our economy. CLICK TO NEXT SLIDE
  • More and more cities are starting to understand the connection between jobs and housing. When towns don’t have enough housing for the workers that businesses need, the businesses leave. One of the main reasons firms relocate isn’t high taxes or strict regulations, but the shortage of housing for their workers. CLICK One study estimates that the Twin Cities lose out on $265 million a year in consumer spending and business-related taxes because they don’t have enough housing. In the past, workers followed the jobs. But these days, jobs follow workers. If we want to recruit a strong workforce, we need to create walkable, lively neighborhoods. Once the workers are here, companies will take notice. CLICK TO NEXT SLIDE ______________________________________________________ Source : GVA Marquette Advisors and Maxfield Research. Workforce Housing: The Key to Ongoing Regional Prosperity Found at www.fhfund.org/_dnld/reports/Workforce%20Housing_Full%20Report.pdf.
  • Increasing the amount of downtown housing and thus downtown consumers will also attract more neighborhood retail districts, which generates additional sales tax revenue. CLICK TO NEXT SLIDE ______________________________________________________ Source : Density Myth & Reality presentation, Byrne McKinney & Associates Real Estate Appraisers and Consultants and Goody Clancy Architecture, Planning and Preservation.
  • Here are some visual examples of how well-designed density can transform neighborhoods. CLICK TO NEXT SLIDE
  • Just look at what we can create if we do this right. CLICK TO START TRANSITION We can create new commercial centers CLICK TO NEXT SLIDE WHEN TRANSITION COMPLETE
  • And we can reclaim underused industrial areas. CLICK TO BEGIN TRANSFORMATION CLICK TO NEXT SLIDE
  • Now the important part. CLICK TO NEXT SLIDE
  • We have a great opportunity here now that urban living is popular again. But to capitalize on this shift, we need to take action and start planning. And everyone has a role to play. This isn’t something we can just assume policymakers will, or even can, take care of on their own. CLICK TO NEXT SLIDE
  • Although elected officials certainly do have an important role. CLICK For instance, most zoning regulations are more than 50 years old and prohibit developments that mix residential and commercial uses. We need to change that. CLICK: In addition to updating planning laws, as elected officials you can create economic incentives that encourage developers to build the kind of developments we want. We have lots of tools at our disposal to shape growth. CLICK You can also help change the dialogue and help reduce citizen opposition to density. You need to educate citizens that density can bring new jobs, new retail, new tax revenue and more. CLICK And you can reassure residents that you won’t approve density unless it’s done well. CLICK TO NEXT SLIDE
  • There are also several things business leaders can do to make this new future happen. CLICK For instance, you can attend planning meetings to support good projects. Too often, the only people at these meetings are the ones who oppose new development. You can also -- lobby for zoning changes, and -- locate your business in already developed areas. And you can help your employees understand the connection between housing and jobs and that when they oppose new development they could be putting their own jobs at risk. CLICK TO NEXT SLIDE
  • Finally, citizens themselves play a key role. CLICK -- You can get educated about the importance of compact development and help your neighbors understand that it can be a positive thing. -- You can get involved early in comprehensive planning efforts instead of opposing individual projects. -- You can urge policymakers to engage the residents and create a comprehensive smart growth plan for the town. -- and you can attend public hearings for new developments and ask the right questions: - Does it fit in? - Is it integrated with the transportation system? - Does the developer have a successful track record? CLICK TO NEXT SLIDE
  • The main things we can learn from this information are: First, we have tremendous opportunity ahead of us that we can capitalize on by creating higher-density, mixed use neighborhoods. Second, if we want this vision of an even better city to happen, we have to work together. CLICK TO NEXT SLIDE
  • Thank You. If you want to learn more about this issue, I encourage you to visit the web sites of the groups who put this presentation together. Questions
  • Urban Density Final

    1. 1. A Plan for Tomorrow: Creating Stronger, Healthier Cities Today
    2. 2. A Plan for Tomorrow <ul><li>The U.S. population is expected to increase 33% by 2030 to 376 million. </li></ul><ul><li>That’s 94 million more people than there were in 2000. </li></ul><ul><li>About half of the homes, office buildings, stores and factories needed by 2030 don’t exist today . </li></ul><ul><ul><ul><ul><li>Source: Brookings Institution </li></ul></ul></ul></ul>
    3. 3. A Plan for Tomorrow <ul><li>Growth = Choices and Opportunity. </li></ul><ul><li>Sprawling, low-density: </li></ul><ul><ul><li>Creates long commutes </li></ul></ul><ul><ul><li>Creates bedroom towns with no sense of community </li></ul></ul><ul><ul><li>Consumes natural areas </li></ul></ul><ul><ul><li>Damages the environment with air and water pollution </li></ul></ul>
    4. 4. A Plan for Tomorrow <ul><li>Build a new model based on the best urban neighborhoods. </li></ul><ul><ul><li>Walkable areas with homes, shopping, jobs and entertainment intermixed </li></ul></ul><ul><ul><li>A mix of homes for a wide range of residents </li></ul></ul><ul><ul><li>Parks and outdoor recreation </li></ul></ul>© Steve Hinds Photography © Steve Hinds Photography
    5. 5. A Plan for Tomorrow <ul><li>The common ingredient…. </li></ul>…… well-designed, mixed use, higher-density, development . © Steve Hinds Photography © Steve Hinds Photography
    6. 6. <ul><li>Density done well can: </li></ul><ul><ul><li>Help balance city budgets </li></ul></ul><ul><ul><li>Transform declining neighborhoods into lively ones </li></ul></ul><ul><ul><li>Reduce traffic congestion </li></ul></ul><ul><ul><li>Provide housing options within reach of municipal employees </li></ul></ul><ul><ul><li>Preserve space for parks and outdoor recreation </li></ul></ul>A Plan for Tomorrow © Steve Hinds Photography © Steve Hinds Photography
    7. 7. Five Principals of Successful Communities
    8. 8. 1. Make Room for Tomorrow
    9. 9. Make Room for Tomorrow <ul><li>Thanks to strong population growth, the U.S. will need almost 60 million new housing units by 2030. </li></ul><ul><ul><ul><ul><li>Source: Brookings Institution </li></ul></ul></ul></ul>
    10. 10. Make Room for Tomorrow <ul><li>We can welcome these residents and improve our quality of life through mixed-use, higher density development . </li></ul><ul><ul><li>Creative conversions of existing properties </li></ul></ul><ul><ul><li>New construction to replace eyesores or revitalize underused/blighted areas </li></ul></ul>All images © Steve Hinds Photography
    11. 11. 2. Build for New Choices
    12. 12. Build for New Choices <ul><li>For 50 years, families with children drove America’s housing industry. </li></ul><ul><li>But now, married couples with children make up less than 25 percent of American households. </li></ul><ul><ul><ul><ul><li>Source: U.S. Census Bureau </li></ul></ul></ul></ul>
    13. 13. Build for New Choices <ul><li>Today’s fastest growing households are: </li></ul><ul><ul><li>Young professionals </li></ul></ul><ul><ul><li>Empty nesters </li></ul></ul><ul><ul><li>Single parents </li></ul></ul><ul><ul><li>Couples without children </li></ul></ul><ul><ul><li>Senior citizens </li></ul></ul><ul><li>They create demand for: </li></ul><ul><ul><li>the Live/Work/Walk experience. </li></ul></ul><ul><ul><li>Apartments, condos and townhouses </li></ul></ul>
    14. 14. Build for New Choices <ul><li>In a national survey, 6 out of 10 prospective homebuyers chose a higher-density, mixed use community . </li></ul><ul><ul><ul><ul><li>Source: Smart Growth America and National Association of Realtors </li></ul></ul></ul></ul>© Steve Hinds Photography
    15. 15. Build for New Choices <ul><li>40% of apartment residents choose to rent for lifestyle reasons, not because they have to. </li></ul><ul><li>Nearly one-quarter of renters earn $50K or more. </li></ul><ul><ul><ul><ul><li>Sources: Fannie Mae Foundation; U.S. Census Bureau </li></ul></ul></ul></ul>
    16. 16. Build for New Choices <ul><li>Demand for higher density homes will hit new highs by 2015 due to an influx of: </li></ul><ul><ul><li>78 million downsizing Baby Boomers </li></ul></ul><ul><ul><li>78 million children of the Baby Boomers graduating from college </li></ul></ul><ul><ul><li>9 million new immigrants </li></ul></ul><ul><ul><li>Service and municipal employees priced out of the neighborhoods where they work </li></ul></ul><ul><ul><ul><ul><li>Sources: U.S. Census Bureau, U.S. Department of Homeland Security Office of Immigration Statistics </li></ul></ul></ul></ul>All images © Steve Hinds Photography
    17. 17. 3. Make the Most of What We Have
    18. 18. Make the Most of What We Have <ul><li>Sprawl is expensive! </li></ul>
    19. 19. Make the Most of What We Have <ul><li>Compact development reduces infrastructure costs and saves money . </li></ul><ul><li>Chicago can save $3.7 billion over 20 years by growing compactly. </li></ul><ul><li>Nationally, the U.S. can save over $100 billion in infrastructure costs over 25 years by growing compactly. </li></ul><ul><ul><ul><ul><li>Sources: Urban Land Institute; Brookings Institution </li></ul></ul></ul></ul>
    20. 20. 4. Attract the Best
    21. 21. Attract the Best <ul><li>New residents help transform areas into viable, vibrant communities. </li></ul><ul><li>Higher-density development offers homes that are within reach of vital community members such as: </li></ul><ul><ul><li>Teachers </li></ul></ul><ul><ul><li>Nurses </li></ul></ul><ul><ul><li>Fire fighters </li></ul></ul><ul><ul><li>Police officers </li></ul></ul><ul><ul><li>Retail salespeople </li></ul></ul>
    22. 22. 5. Jumpstart Our Economy
    23. 23. Jumpstart Our Economy <ul><li>Attract new employers and retain existing ones. </li></ul><ul><ul><li>Employers need workers. </li></ul></ul><ul><ul><li>Workers need housing </li></ul></ul><ul><ul><li>Without housing, workers and jobs leave a community </li></ul></ul><ul><ul><li>Towns lose out on consumer spending and tax revenue. </li></ul></ul><ul><li>Minneapolis-St. Paul region loses out on an estimated $265 million per year in consumer spending and business taxes because it lacks sufficient housing. </li></ul><ul><ul><ul><ul><li>Source: GVA Marquette Advisors and Maxfield Research </li></ul></ul></ul></ul>
    24. 24. Jumpstart Our Economy <ul><li>Attract new retail development. </li></ul><ul><ul><li>1,000 to 2,000 new houses and apartments within a 10-15 minute walk can support new retail areas. </li></ul></ul><ul><ul><ul><ul><li>Sources: Byrne McKinney & Associates and Goody Clancy Architecture, Planning and Preservation </li></ul></ul></ul></ul>
    25. 25. Imagine the Possibilities
    26. 26. Neighborhood Commercial Center
    27. 27. Transit-Oriented Areas Urban-Advantage.com
    28. 28. Industrial Sites Urban-Advantage.com
    29. 29. Next Step: Take Action
    30. 30. Take Action <ul><li>If you like what you’ve seen, we need to take action. It won’t just happen. </li></ul><ul><li>Everyone has a role to play. </li></ul>
    31. 31. Take Action <ul><li>The Role of Elected Officials: </li></ul><ul><ul><li>Change the regulatory climate </li></ul></ul><ul><ul><ul><li>Update our zoning/land use regulations </li></ul></ul></ul><ul><ul><li>Change the economic climate </li></ul></ul><ul><ul><ul><li>Density bonuses </li></ul></ul></ul><ul><ul><ul><li>Tax deferrals and reductions </li></ul></ul></ul><ul><ul><ul><li>Fee waivers </li></ul></ul></ul><ul><ul><ul><li>Setting aside or buying down the cost of land </li></ul></ul></ul><ul><ul><li>Change the dialogue </li></ul></ul><ul><ul><ul><li>Educate citizens – density brings new amenities, new jobs, new tax revenues, new retail </li></ul></ul></ul><ul><ul><li>Change the political climate </li></ul></ul><ul><ul><ul><li>Build citizen support for higher-density growth by creating a community-based vision for growth </li></ul></ul></ul><ul><ul><ul><li>Assure citizens you will insist on quality </li></ul></ul></ul>Elected Officials
    32. 32. Take Action <ul><li>The Role of Business Leaders: </li></ul><ul><ul><li>Attend planning meetings to support good projects </li></ul></ul><ul><ul><li>Lobby for zoning law changes that allow for higher density and mixed uses </li></ul></ul><ul><ul><li>Locate businesses near public transportation and existing infrastructure </li></ul></ul><ul><ul><li>Encourage employees to actively support proposals for higher-density housing near jobs and transportation </li></ul></ul>Business Leaders
    33. 33. Take Action <ul><li>The Role of Citizens: </li></ul><ul><ul><li>Get educated about the importance of compact, mixed use development and spread the word. </li></ul></ul><ul><ul><li>Get involved early in comprehensive community planning. </li></ul></ul><ul><ul><ul><li>Urge local leaders to create a community-based vision for future smart growth </li></ul></ul></ul><ul><ul><li>Attend planning meetings and insist on: </li></ul></ul><ul><ul><ul><li>Quality design that fits in with the community </li></ul></ul></ul><ul><ul><ul><li>Track record of success </li></ul></ul></ul><ul><ul><ul><li>Integrated with the transportation system </li></ul></ul></ul>Citizens / Environmentalists
    34. 34. Take Action <ul><li>The future is our choice. </li></ul>or © Steve Hinds Photography
    35. 35. For more information, contact: <ul><ul><li>(202) 974-2300 </li></ul></ul><ul><ul><li>www.nmhc.org </li></ul></ul><ul><ul><li>(202) 624-7000 </li></ul></ul><ul><ul><li>(800) 321-5011 </li></ul></ul><ul><ul><li>www.uli.org </li></ul></ul><ul><ul><li>(202) 547-1141 </li></ul></ul><ul><ul><li>www.sierraclub.org/sprawl </li></ul></ul>Take Action